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> It was a failure to have a group of professionals with mutual interests work it out together. It was a failure that an adult didn't step up. What exactly do
by voisin 4y ago
> It was a failure to have a group of professionals with mutual interests work it out together. It was a failure that an adult didn't step up.
What exactly do you think they should have done? The issue was that startups would need money in a less attractive environment (rising rates) and so it was just a matter of time before the mismatch between short term deposits and long term bond portfolio would clash.
- pcarolan 4y agoThe gap between assets and liabilities on thu/fri (as i understand it) was single digits. SVB tried to raise capital, but instead long-term customers pulled their deposits and told their portfolios to do the same. Some kind of restructuring and reassurances have prevented runs like this in the past and could have now. Maybe more will come out, but it felt like it was undone by lack of the kind of co-operation you often in local chambers of commerce and rotary clubs. These people were on first name basis with the board and president of the bank for a reason. Where were they?